The shares trade for 1.2 times their reported Dec. 31 tangible book value of $134.06, and for 10.7 times the consensus 2014 EPS estimate of $14.89, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $13.58.
Goldman reported 2012 net earnings applicable to common stockholders of $7.3 billion, or $14.13 a share, increasing from $2.5 billion, or $4.51 a share, as the company's debt underwriting business saw a major recovery, and rising markets helped it earn solid profits on investments. The company reported a return on average common equity of 10.7% for 2012, increasing from 3.7% the previous year.
Credit Suisse analyst Howard Chen rates Goldman Sachs "outperform," with a 12-month price target of $160.00, saying in a report on Feb. 12 that "current valuations continue to suggest very low embedded return expectations."
Chen called Goldman "a best-in-class brokerage franchise with solid market positioning across myriad client businesses and a strong balance sheet," and said that "with a proven ability to gain and sustain market share across the franchise and a long track record of performance and achieving premier returns, we expect GS to continue to deliver fundamental results that are at the high end of the peer group."
Credit Suisse estimates Goldman will earn $13.60 a share this year, and is way out in front of the consensus, estimating 2014 EPS of $16.10.
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-- Written by Philip van Doorn in Jupiter, Fla.